In the message of the President of the Republic of Kazakhstan to
the nation of Kazakhstan as of December 14, 2012 Strategy
"Kazakhstan--2050" New policy of the established state"
it was emphasized that everyone in country can find a job if he wishes
so, "we establish the Society of the Universal Labor, where
unemployed people will not just receive allowance, but learn new trades,
where disabled people will be able to be actively engaged and--create
decent working conditions for them" (2012).

Reform of the labor relations in the frames of the development
trends, determined by N. A. Nazarbayev, pursues the most important
goals--to enforce the real protection of working rights of employees, to
serve legitimate interests of employers, to increase rate of
remuneration and population employment. The labor market became an
integral part of any effective system. The human capital, harmonically
distributed and efficiently functioning in the labor market, establishes
the basis for a stable development of regions and the country as a
whole. Kazakhstan has set a course for establishment of the socially
oriented state, which is differentiated by the effective industrial
growth, its drive for a person and his increasing demands (Nazarbayev
1994). In this context the change occurred over the period from 2010
till 2020 to the Concept of the legal policy of the Republic of
Kazakhstan, approved by the Decree of the President of Kazakhstan #858
dated August 24, 2009, the Concept that established that in the market
economy conditions the issue of the labor relations was becoming actual
(2009).

The aim of the article is to study the economic and legal aspects
of the labor market regulations in the modern Kazakhstan.

Tasks specify the aim of the research:

--To determine essence of the concepts "labor market" and
"employment";

--To analyze regulative and legislative framework of the labor
market regulations and mechanism of the population employment
regulations.

1. To review certain indicators used for the employment assessment,
as an indicator of the working standards

An overview of the literature

Methodological basis of the research is comprised of the generally
recognized abstract and theoretical, logical, statistical methods and
assessment. The works of the following scientists are devoted to the
labor market study: Bekisheva, G. S. (2013), Dzhumambayev, S. K. (2000),
Meldekhanova, M. K. (1999), Shokamanova Y. K. (2005) and others.

Despite of the state of study of the issue, the economic and legal
aspects of the labor market in the modern reality of Kazakhstan are not
quite studied and require close attention of the scientists that
predetermined the writing of this article.

2. Optimal capital structure and its influence

It is appropriate to determine the concept of the "labor
market", understood as the system of public relations (including
legal), norms and institutions, providing reproduction, exchange and
usage of the labor. Such a definition of the labor market presents this
category as well as a market form of the labor organization and the
population employment. In particular, O. Yu. Mamedova writes that it is
necessary to have "availability of the labor markets", goods
and capitals, movement of which gives a required impulse to the market
economy. The labor market providing optimal employment and continuing
education of the modern manpower is of the special importance (Mamedova
2011).

In the market conditions the full employment is considered not as
mass employment, but as the employment with an acceptable level of
unemployment in the given socio and economic conditions. And achievement
of the mass employment is not a goal in itself, but the way of
satisfaction of a demand of the working population in the sphere of the
public labor, with unconditional respect of employers' interests.
The system of the employment regulations includes economic and legal
mechanisms to influence the labor market. O. M. Medvedev states the
concept of the legal regulation of the employment problem and indicates
that to a significant extent it must be a part of the regulation of the
labor market itself. He limits economic and legal influence on the labor
market, emphasizing their equal opportunity (Medvedev 2008).

M. A. Vinokurov has also stated: "The labor market is the
system of economic relationships, arising in regards to forming and
redistribution of the manpower, its employment and remuneration,
regulated by the legal norms emerging as a method of resources
management" (2011).

In the labor law science there is another approach to regulation of
the labor market. From the perspective of S. P. Mavrin the labor market
in the absolute sense is the socio-economic relations, in the frames of
which the interactions of market members are being carried out
influenced by supply and demand of a certain market product, at that the
latter is the labor, as the object of relationships of employer and
employee (Khokhlova 2001). The situation on the labor market is
constantly changing, nearly all institutions of the labor law are
involved in it, and we can confirm that the labor law regulates the
labor market matters. The important part in the formation of the
civilized labor relations in the market conditions is given to the Labor
Code of RK (hereinafter referred to as LC RK), approved on May 15, 2007.

With the developed economy the legal regulations of the employment
is based on the adequate material and financial security and is more
efficient in terms of its practical implementation. The distinctive
feature is the development and establishment of the system of the legal
regulations of the population employment in RK (as well as other
countries) in the conditions of the market economy, revolutionary, but
not evolutionary in form and in content, denial of succession and
positive experience, accumulated in the USSR, in particular, the right
to labor and replacement it with the freedom of labor concept. The
employment means in fact that a citizen realizes his freedom to choose a
trade and his right to labor. S. A. Dimitrova believes that the matter
of a legal nature of the right to labor, if considered to a wider level,
right to employment, has grown stale due to the fact that effective
Constitution of RK in the article 24 has enforced not the right to labor
but right to freedom of labor (2001). Acceptance of an individual's
interests' priority is necessary to solve the issue of
voluntariness and obligation of the labor to ensure effective
employment. At the same time the right to labor is required to be
connected to the public demand in the manpower. It should mean a free
selected employment, as the right of unlimited selection of trades and
work spheres, region in any sector of the economy.

Insufficient legal support of the new model of employment is
conditioned by a declarativity of the articles of the Constitution in
regards to the problems of the employment, separate provisions of the
employment programs, their disagreement with social projects of
development and usage of the labor potential of the country. The lack of
those shows the insufficiency of the traditional measures of the
employment policy and becomes apparent in lack of other sources of
income amongst the majority of the employed population, except for a
salary, low starting level of the salary, that provokes secondary, most
of the time inefficient employment, high tension in the labor market.

The necessity of strengthening of the state origin in regulation of
the employment model is justified by preservation of the significant
share of the state sector in the industrial structure in the transition
economy. That's why the role of the state, as the owner, in
regulation of the employment is significant and shouldn't be
reduced, at least, in the mixed economy of the transition period (Le
Thang Bin 2005).

We agree with A. M. Nurmagambetov that "integration of the
Republic of Kazakhstan into the international labor market is defined by
the intrinsic requirements of the Kazakhstani economy, necessity to
effectively use the labor potential. It allows, on one part, studying
and implementing the international experience of regulation of the labor
relations, on the other part--recognizing gaps in the current
legislation regulating the international labor; that makes law-making in
this area more relevant" (1998).

Constitutional framework of the legal regulation of the labor
market have been translated into the Law of the Republic of Kazakhstan
#149-II dated January 23, 2001 "On population employment"
(2013). The normative acts on the population employment establish
objectives, means, principles of the employment policy, basics of the
employment services, which is justified by the fact that primary task of
the decent work is defined as creating jobs. In the labor laws of
foreign countries the national objective in the employment is determined
as support of full, productive and freely selected employment. It is
considered from the perspective of the economic growth stimulation and
development, improvement of living standards, satisfaction of manpower
demands and liquidation of unemployment and underemployment.

Starting from 1991, the labor market and employment regulations in
RK were carried out mainly in the format of the special programs of the
population employment: Programs on poverty and unemployment control,
Programs on the population employment in the Republic of Kazakhstan. In
the international practice the active programs on the labor market
(hereinafter referred to as APLM) are being used to resolve such
problems. APLM are carried out through development of the manpower
resources (professional training and further training), increase of the
manpower demand (subsidizing of salaries/employment, public works),
improvement of the labor market regulation (foundation of the employment
services, informational support), combination of the activation of the
labor efforts with the system of the social support, implemented by the
state (strategy of "rights and obligations" or "mutual
obligations", when the state is obliged to provide high quality
employment and training services, and a participant of APLM is obliged
to conduct an intensive job search).

Initially, such programs were used during the economic depression
and high level of unemployment, currently, used to ease the negative
influence of the industrial restructuring in countries with transition
economies and integration of the exposed population groups, farthermost
from the labor market.

For the first time ever, the law on employment was passed in the
USA in 1946, which declared the necessity to create job opportunities,
but no right to work was guaranteed (Chizhova 1996).

Starting from 1991, the labor market and employment regulations in
RK were carried out mainly in the format of the special programs of the
population employment: Programs on poverty and unemployment control,
Programs on the population employment in the Republic of Kazakhstan. In
2008-2010 Action plan for improvement of the population employment
system in the Republic of Kazakhstan was developed and approved by the
Decree of the Government of the Republic of Kazakhstan #1114 dated
November 20, 2007, it was intended for prevention of unemployment
growth, support of the productive employment growth, increase of
manpower quality and protection of the national labor market.

Today the condition of the national labor market is mainly
determined by the employment policy carried out by the state. The state
pursues the population employment policy, including further training of
employees, support on job search, subsidizing of new jobs. Over the last
10 years the number of the employed population increased from 6698.8
thousand up to 8141.4 thousand people, and unemployment level has
decreased from 12.8% in 2001 to 5.5% at the end of 2012 (Central
Statistical Agency of the Republic of Kazakhstan 2012).

The number of unemployed in May 2013 was 480.3 thousand people. The
unemployment level totaled 5.3% of the number of the economically active
population. The number of people, registered in the employment
authorities as unemployed totaled 66.9 thousand people by the end of May
2013 or 0.7% of the number of the economically active population. The
level of the hidden unemployment is estimated at 0.4% of the
economically active population (34.2 thousand people) (Central
Statistical Agency of the Republic of Kazakhstan 2013). Over the last
decades the labor market development in Kazakhstan was under immediate
influence of the internal economic development and economy
globalization. Stable economic growth and relevant structural changes of
the economy (starting from the end of 1990's and up to 2008) were
accompanied with increase of the national labor market capacity and its
structure change. The manpower demand increase, in some degree, was
connected not only to expansion of the industry, but to preservation of
relatively low rate of labor capacity and possibilities of use of the
cheap labor.

Starting from 2008 under the influence of the world economic crisis
the reduction of production output has started in the Republic of
Kazakhstan, as well as inflation growth, employment decrease and
accordingly, decrease of the population income. In such a situation a
special Strategy on employment and further training of employees
(Approved "Employment road map-2020" 2013) was developed,
aiming to ensure employment, prevent unemployment growth, preservation
and creating jobs. It is presented by a complex of simple economic
decisions, directed to implementation of the population employment and
stimulation of the demand growth and production of consumer commodities
with the help of the state.

Wide use of the active forms of the employment support under the
Road map, such as social jobs, youth training, further training and
qualifications upgrade have caused activization of the relevant
population, and level of the youth unemployment records (4.7%) were
lower than the overall unemployment level in the country, for the first
time. The main results of the Road map included implementation of nearly
9 thousand projects, creation of 392 thousand jobs, training and further
training of nearly 150 thousand people, half of which are employed,
employment of more than 192 thousand people to social jobs and
workplaces under the youth training (ibid).

Short-term strategy of the population employment implemented in the
conditions of the crisis has allowed not only preventing the
unemployment growth but achieving some decrease of its level. The
employment growth predetermined the increase of the population income
and decrease of the poverty level. The share of the population with
income lower than subsistence minimum decreased from 46.7% in 2001 to
18.2% in 2006 and 6.5% in 2012 (Central Statistical Agency of the
Republic of Kazakhstan 2013). In order to develop the effective legal
framework for implementation of the population employment strategy the
Ministry of Labor and Social Security of RK has amended some legislative
acts of the Republic of Kazakhstan on the employment matters and
obligatory social insurance, providing for social support of the
citizens by means of active support of the employment. The Law of RK
"On state procurement" was amended and supplemented to ensure
simplification of the procurement procedure for local executive
authorities for the purposes of implementation of this program. In
addition to the mobilization of the state finances the stimulation of
the private enterprises became active under the "Road map" to
invest in diversification and innovations introduction into the
infrastructure of economic sectors and industries.

Nevertheless, despite the positive changes, the national labor
market is not balanced. While there are unemployed people, the open
vacancies are available; there is no objective forecast of economic
sectors' specialists demand. There is a manpower deficiency, first
of all, qualified personnel, technical and service workers due to the
low quality of manpower and lack of real connection between production
and education. Approximately one third of the employed population
doesn't have vocational education.

The share of independent employment in the structure of the
employed population is 33.3% or more than 2.7 million people (ibid). The
main part of the self-employed people lives in the countryside and is
occupied in a private farming, the income is at the level of the
subsistence minimum usually. In their majority the self-employed people
are not covered by the system of the social security and support.

Development and implementation of the special measures to preserve
the jobs and support employment under the Road map have allowed
maintaining high level of the employment during the years of the
temporary economic constraints due to the influence of the world
financial crisis (2008-2010).

Transition to the accelerated industrial and innovative development
carried out in present time, on one hand, expands possibilities of
further growth, and on other hand, requires development and
implementation of new approaches to involve internal manpower reserves
into the labor market, to increase quality and economic activity of the
manpower.

On June 11, 2013 the Government of Kazakhstan has approved the new
complex program Road map of employment, designed until 2020 and aimed at
increase of Kazakhstan labor market efficiency. The program includes
both operational anti-crisis actions in case of the world economy
situation deterioration and systematic actions to ensure productive
population employment (Dawson 1907).

The program provides for implementation of three main lines:
employment through development of the infrastructure and Housing and
Utility Sector, employment through development of agricultural
entrepreneurship, employment through education and migration (Approved
"Employment road map-2020" 2013).

The international treaties of countries, first of all, conventions
of the International Labor Organization (ILO) play significant role in
the labor market regulations. The reference to the ILO Program of decent
work is of apparent significance; it is an adequate response to the
globalization challenges in the labor market, and that's why the
creative use of its objectives implementation can increase efficiency of
the legal regulation of the labor and other associated relationships in
the Republic of Kazakhstan (Rampell 2009).

In 1999 at the 87th Session of the General ILO Conference the
International Labor Organization has approved the Program of decent
work, where the decent work is given a center stage in the development
of the national economic and social policies, and the key role in
provision of equation and social equity. "Decent work is first of
all safe, high efficiency, well organized, and, of course, highly and
equally renumerated labor" (Pozdnyakov 2013).

Integration of every taken country into the world society leads to
the situation that in the current conditions the Labor Law of the
country is developed along with the world trends, determined by the ILO
Program of decent work, which represents the response to the
globalization challenges in the labor market. Since then, the concept of
the decent work has overcome some changes, which have influenced the new
definition of the objectives of the decent labor. The basis for the
writing of the National program on decent work for 2013-2015 was the
theoretical views of O. Dawson (1907) and J. S. Mill (1907). The concept
of the decent work is focused exactly on the labor relations and
includes four main trends:

--Creating jobs;

--Guaranteeing rights at work;

--Extending social protection;

--Promoting social dialogue.

Besides, in January 2007 EU countries have approved a new concept
"Quality of work and employment in Europe", which is the
development of ideas, set in the ILO Program of the decent work with
consideration of the European Social Model at the higher level (Quality
of work and employment in Europe 2007).

The relevance of the issue under review is justified, at least, by
three circumstances. First, the Program of decent work became one of the
priorities in ILO over the last years, it is mentioned in the
Declaration on social equity in conditions of equal globalization 2008,
developing common principles of the international law at work. In
accordance with the first report on discussed issues in regards to
employment problems general overview of 2010 covers six key norms
related to employment: Convention on policy at work as of 1964 (122),
Convention on development of human resources as of 1975 (142),
Convention on organization of employment service as of 1948 (88),
Convention on private employment agencies as of 1997 (181),
Recommendation on creating jobs at small and middle businesses as of
1998 (189) and Recommendation on promoting of cooperatives development
as of 2002 (193) (Quality of work and employment in Europe 2007).

Experts committee states that despite a change of economic policy
models of 80-s and 90-s "... nearly all countries are committed to
increase level of productive employment" (MKT 2010). It is
reflected in the references in regards to creating jobs and in the
legislation on social and labor matters; approval of special laws; and
in their key program documents. Countries more often develop and accept
national working policy, unifying various measures, programs and
institutions, that influence supply and demand of the manpower and
functioning of the labor market. In accordance with review of the main
discussed working issues and three-party approved conclusions, defined
at the latest round of the regional meeting, youth employment issue
becomes one of priorities, followed by the issue of negotiation of
consequences of the globalization for employment. Industry policy also
becomes one of the priorities, determining sectors with high potential
of employment growth and strategies to eliminate barriers on the way of
creating a bigger number of quality jobs.

Programs of decent work accepted in different countries are the
main way of expression of needs of three-party participants at the
national level, and also satisfaction of these needs. As a rule, they
unify employment programs with national development plans, strategies of
alleviation of poverty (SAP) and country employment strategies.

The Republic of Kazakhstan accepted the Program on decent work
(NPDW), which is developed in cooperation with three-party partners of
the Republic of Kazakhstan and is the continuation of jointly conducted
work on promotion of the principles of the decent work in Kazakhstan, in
order to provide stable socio-economic development and improvement of
standards and living standards for men and women.

The program is guided by provisions of Millennium development goals
(2007), UN Development Assistance Framework (UNDAF) and ILO Global
Working Compact. The program is also based on the national priorities,
determined in the Development strategy of the Republic of Kazakhstan up
to 2030, mid-term and long-term Government strategies, such as Concept
of Kazakhstan transition to a stable development until 2024 and
Strategic plan of the Ministry of Labor and Social Security of the
Republic of Kazakhstan for 2010-2014. The program became a continuation
of the previous cooperation programs of socio-working relations with
consideration of the world financial crisis influence. The major
employment reforms will aim at promotion of the ILO Global compact
principles at workplaces in the national employment policy. The key
indicators and strategies required for achievement of the set goals and
results in three directions are stated in the program: regulation of
working relations issues in accordance with the international standards;
support of effective employment; further development of three-party
collaboration and social dialogue.

Lately the problems of the legal regulations of different forms of
non-standard and atypical employment are the mostly discussed not only
in international, but national literature (Tucker 2002). Non-standard
employment traditionally means all forms of employment, varying from
full day recruitment on the basis of open-end labor contract under
immediate management of employer or authorized representative. During
the soviet time as a result of the formal domination of the overall
equality idea the concept of the non-standard employment itself
didn't have a right to exist, despite the legislative consolidation
of some of its variations in the Labor Law. The situation has changed
only at the beginning of 90-s of the last century, along with transition
from the socialistic to the market system of economic management. First
the necessity of the labor regulations, including application of various
forms of the non-standard employment, was mentioned the economic and
then in the legal literature. Emphasis was given to those widely spread
in the world; however, it lasted until legislative consolidation of, in
particular, temporary agency work and telework in the Labor Law. These
forms of non-standard employment are usually classified as unstable
(precarious employment), associated with deterioration of involved
employees, decrease of level of their working rights and guarantees
(Standing 2011). This, in its turn, determines necessity for a special
protection of appropriate employees by the state, adoption of special
legal arrangements, aimed at provision of decent work to them. There is
no single viewpoint reached in regards to the legal prospects of the
temporary agency work in the Kazakhstani science and in practice.

Researches conducted by the ILO during the last year reflect main
trends of the EU countries labor market development and study latest
reforms, undertaken by different countries to improve situation in the
labor market. Employment remains dyspeptic in the majority of the
countries of the European Union, and other 4.5 million jobs can be lost,
underdetermining primacy of financial goals as a basis of the political
strategy (ILO 2012. EuroZone job crisis: trends and policy responses).
Global financial crisis and prospects of the on-going economic decline
in 2013 badly influence levels of unemployment and partial employment of
different groups of population. These factors financially press systems
of the social security, frameworks of taxes and fees of which are
reduced, while their expenditures for allowances payment should
increase. All this complicate the situation in the world (Employment and
social protection in the new demographic context 2013).

3. Research methodology

Due to transition to market relations, establishment of labor
market and development of new system of socio-labor relations the USSR
ratified the ILO Convention #160 "On labor statistics" in
1990, that determined transition to the international statistics norms
in the labor market research. In accordance with these norms
economically active population, employed and unemployed people became
the main economic categories for methodological assessment of the labor
market (1988).

In this connection labor market condition and various research
assessment indicators were defined (Eliseeva 2002). The major of those
include:

1) level of economic activity of population (y), defined as ratio
of number of economically active population to economically inactive
population:

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII], (1)

where: [y.sub.[??]aH]--level of economic activity of population;

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]--number of
economically active population;

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]--number of
economically inactive population;

2) level of economic inactivity of population ([y.sub.[??]HaH]),
defined as ratio of number of economically inactive population to
economically active population and economically inactive population:

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII], (2)

where: [y.sub.[??]aH]--level of economic inactivity of population;

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]--number of
economically active population;

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]--number of
economically inactive population.

At that the following equation applies:

[y.sub.[??]aH] + [y.sub.[??]HaH] = 1; (3)

3) employment level, calculated as ratio of employed population
([[??].sub.3]) to total number of economically active population
([MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]):

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII], (4)

where: [y.sub.3]--level of population employment;

[[??].sub.3]--number of employed population;

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]--number of
economically active population;

4) unemployment level defined as a share of number of unemployed
people ([[??].sub.6]) in the number of economically active population
([MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]).

Duration of unemployment and duration of job search, defined as
duration of period during which an unemployed person searches for a job
(Shaikin 2012):

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII], (5)

where: [y.sub.6]--level of unemployment;

[[??].sub.6]--number of unemployed;

[MATHEMATICAL EXPRESSION NOT REPRODUCIBLE IN ASCII]--number of
economically active population.

At that the following equation applies:

[y.sub.3] + [y.sub.6] = 1. (6)

The figure 1 shows the levels of unemployment in Kazakhstan.

As per the data of the Statistics Agency of the Republic of
Kazakhstan number of economically active population, 15 years old and
older, totaled 9.0 million people in the 1st quarter 2013, which is 0.9%
higher than in the same period in 2012. 8.5 million people or 67.8% of
the population 15 years old and older were occupied in the economy of
the Republic. This number increased by 83.6 thousand people (1.0%) in
comparison to the 1st Quarter of 2012 (Table 1).

In accordance with implementation of the industrial and innovative
development strategy the priority is a creation of the basis for the
future competitiveness of the economy of Kazakhstan by means of highly
qualified human resources training for relevant professions.

It is worth to be noted, that in the course of the human resources
training, demands of the national labor market are not taken into
account in full. The situation on the Kazakhstan labor market is
associated with a number of problems, the most important of which in the
formal labor market are a shortage of manpower, first of all, of
qualified personnel, technical and service workers due to low
qualification of manpower and lack of actual connection between industry
and education, occurrence of inefficient employment (high ratio of
employed in labor-intensive industry sectors). In the structure of the
employed population, the share of self-employment is pretty high--33.3%
or more than 2.7 million of people. The main part of the self-employed
people lives in the countryside and is occupied in a private farming,
the income is at the level of the subsistence minimum usually. In the
vast majority the self-employed people are not covered by the system of
the social security and support. Increase of the population employment
efficiency is restricted by insufficient small and middle
businesses' growth rate. While there are unemployed people, the
open vacancies are available; there is no objective forecast of economic
sectors' specialists demand. Current situation means underuse of
available in the country manpower regardless of the growing manpower
demand in the conditions of transition to a new stage of the market
economy

Transition to implementation of the state program of accelerated
industrial and innovative development of the Republic of Kazakhstan
(Decree of the President of Kazakhstan #958, 2010), on one hand, extends
opportunities for further employment growth, and on the other, requires
development and implementation of new approaches to involvement in to
the labor market of internal manpower reserves, increase of quality and
economic activity of the human resources.

In the world practice active programs in the labor market (APLM)
are used for resolution of such problems. APLM are carried out by means
of development of human resources (professional training and further
training), increase of manpower demand (subsidization of
salary/employment, public works), improvement of the labor market
regulation (creating employment services, informational support),
combination of activization of labor efforts with the system of the
social support, executed by the state (strategy of "rights and
obligations" or "mutual obligations", when the state is
obliged to provide high quality services in regards to employment and
training, and a participant of APLM is obliged to carry out intensive
job search).

Initially, such programs were used during economic depression and
high level of unemployment; currently they are applied to ease negative
influence of industrial restructuring in countries with transition
economies and integration of exposed population groups, farthermost from
the labor market.

Positive results, achieved on these grounds, make development and
application of the active programs relevant in Kazakhstan labor market
as well.

The main goal of the new program of Kazakhstan population
employment "Employment strategy 2020" is population's
incomes increase by means of stable and productive employment, which is
to be achieved by resolution of the following tasks: involvement of
self-employed, unemployed and disadvantaged population into the active
employment programs; development of personnel potential for
implementation of industrialization program, improvement of the system
of targeted social assistance ("Employment strategy 2020"
2011).

The program implementation started in 2012. It is intended to
involve more than 1.5 million people into the program by 2015. It will
allow reducing level of poverty in the republic to 6%, and unemployment
level will not exceed 5.5%. It is expected that share of the
self-employed as a part of the employed population will decrease from
33.3% to 26% (ibid).

Implementation of the program, first of all, is aimed at training,
employment, support in opening and expansion of private business at
place of residence, and in case of lack of such possibilities,
assistance of voluntary migration from low economic potential
settlements to high economic potential settlements and centers of
economic growth with the purpose of extending access to productive
employment.

In this connection, the program implementation will be carried out
in the following directions:

Mutual obligations of the participants of the program will be
consolidated by the social contracts. The social contract will be signed
with every participant; it will be the contract on mutual obligations,
including employment. Priorities to participate in the program are given
to the rural youth.

The automated database of current and future jobs will function in
on-line mode for use of existing and future jobs firstly on the projects
of Industrialization Map and program "Road map of
business--2020".

It is required to consider that deficiency of the manpower is
forecasted (long term from 2013 till 2020) due to unfavorable
demographic situation in 1990-s. As per experts' assessments demand
in a foreign manpower by 2015 will total approximately 1.2 million
people. "Transparency" of the borders, visa-free entry of
neighboring countries' citizens, having several times lower level
of income in comparison to population income level in Kazakhstan, and
existence of informal labor market clarifies a significant volume of
unregulated labor migration in the Republic of Kazakhstan. The lag in
level of the labor remuneration in comparison with more developed
countries is preserved. At that, jobs are very differentiated and plural
under this indicator. The upper segment is presented by highly paid
employees of financial sector and employees involved in mining, who have
1.5-2 times higher average monthly salary comparing to the average
monthly salary in the country as a whole. Two priorities, unchanged
through the years, are absolutely obvious: sectors related to natural
resources production and distribution and types of economic activities
with no new cost creation--financial. The lower segment of the labor
market, involving less qualified workers, women, oralmans (ethnical
Kazakhs-repatriates, migrating from the neighboring countries),
agricultural workers is represented by the unstable employment, and much
lower salary level in comparison to the average salary in the Republic.
The make-up of the employed population based on employment status,
distribution by activities and economy sectors allows evaluating the
depth of the market relations, and also the level of the economy
preparedness to implement the plans of the transition to innovative
development line.

One of the main indicators of employment quality is the high level
of labor output. In general due to significant growth of professionalism
of economically active population of the country, it would be fair to
expect a significant increase of the labor efficiency, however, it
didn't happen. One of the reasons of such a situation is a low
quality of basic and professional education of the employed personnel.
Due to lack of well-organized training system of personnel required by
organizations, the biggest pat of economically active population remains
non-demanded. A paradoxical situation occurs, when in the conditions of
lack of available human resources there is an imbalance of labor supply
and demand. Such situation is mainly a consequence of disagreement
between professional training centers' actions, which train
unrequired manpower, and enterprises, being insufficiently active in
terms of the further training of personnel.

The problems of the manpower provision for innovative processes
need to be resolved both at the level of certain enterprises and economy
sectors, and on the national scale. Legal and financial security of
these problems resolution can significantly accelerate the society
modernization. Changes in the employment structure become a more
important factor of the innovative development in the nearest years.

Results of the research. General overview

System problems of the economic and legal aspects of the labor
market regulation, emerged in this direction, on the national scale,
need to be considered in a complex and to be overcome with the help of
development and implementation of various state employment programs. The
legal infrastructure of the labor market must be determined with
international treaties, first of all, convention of the International
Labor Organization (ILO): Convention of slavery as of 1926, Convention
on Abolition of Forced Labor as of 1957, Convention against Torture and
Other Cruel, Inhuman or Degrading Treatment or Punishment as of 1984.

The next priority of the labor market relations regulation can
include various types of cooperation of the state and private
structures, interested in enhancement of the manpower potential for the
successful innovative development. It is required to maintain a focus on
problems of regulation mechanism, including elaboration of effective
measures to influence demand, supply and price of manpower for purposes
of development of the perspective labor market model in Kazakhstan. The
words of Maltus et al. (2001), who declared that capitalist economy
possesses most likely not natural aspiration to growth and balance, but
aspiration to cycles, periodical misbalance and chronic attacks of
stagnation, are relevant as never before. J. M. Keynes in his work
"General theory of employment, percent and money" in the
course of analysis of the population employment drew a conclusion that
"establishment of the centralized control, necessary for provision
of the full employment, will definitely require significant expansion of
the traditional government functions" (Keynes 1937). Creating new
technologically advanced jobs in post-crisis perspective must be
considered as a priority direction of the labor market regulation in the
country. In the modern labor and employment market of Kazakhstan the
population employment is the most important condition for development
and implementation of the manpower potential as combination of abilities
and capabilities of the personnel to ensure effective functioning of the
organization system, achievement of current and long-term goals in the
interests of the state.

Elaboration of the agreed measures, on one part, from the state
authorities, and on the second part, from professional unions and, on
the third part, employers and their associations is certainly of
significance in resolving the issues of assistance to the population
employment. It is required to find a consensus to ensure functioning of
the civilized labor market instead of accidental one, where used by
employer labor remains unsecured, as there are no social payments, work
conditions and its remuneration are being violated (Yerimbetov 2009).
Based on the necessity of development of the flexible labor market, each
of social partners must in some degree change his traditional role in
the socially oriented state. In order for employers to create new jobs,
they must actively search for qualified personnel; employees must
actively search for new forms of work application. Traditional risks in
regards to content and training of inefficient employees, laid only on
employers previously, started to be redistributed: the state's role
became more significant in creating vital social security system under
the principles of the private-public partnership.

Thus, the following conclusions are drawn in the article: The state
actively participates in the processes of foundation and development of
the labor market and social security of unemployed peopleLegislative and
regulatory framework in terms of the labor market, work relationships
and social partnership regulation is being improved;

New members of the market appeared--entrepreneurs, their unions,
private employment agencies, training centers; Employment structure has
changed, new business segments have come into existence; Kazakhstan
labor market is more dependent on the development of not only internal
but global economy.

Kazakhstan-2050 must become a strong and stable state, the social
basis of which consists of the middle class, as the share of small and
medium business will be doubled in the economy of the country, and by
2050 it will become prevailing. First of all, the country will possess
the state-of-the-art technologies; secondly, this country is with
flexible and efficient political system, based on the democratic
principles and fair competition.

Compilation from Statistics Agency of the Republic of Kazakhstan.
2012. Astana, 456.

Compilation from Statistics Agency of the Republic of Kazakhstan.
2013 (half). Astana, 300.

Decree of the President of the Republic of Kazakhstan "On
state program of accelerated industrial and innovative development ofthe
Republic of Kazakhstan 2010-2014", 19.03.10, vol. 958.

Decree of the President of the Republic of Kazakhstan # 858 as of
August 24, 2009, "On concept of the legal policy of the Republic of
Kazakhstan from 2010 to 2020", Kazakhstanskaya Pravda, 27 August,
2009.

Dimitrova, S. A. 1998. Legal problems of labor and employment of
population in the Republic of Kazakhstan. Almaty. 302 p.

Message of the President of the Republic of Kazakhstan--Leader of
the Nation--Nursultan.

Mill, J. S. 1907. On social freedom: or the necessary limits of
individual freedom arising out of the conditions of our social life.
Oxford and Cambridge review on Google Books.

Millennium development goals. Agroizdat, 2007. 141 p.

Morozov, P. E. 2012. Modern trends of the development of
international labor law in the conditions of the globalization:
Author's abstract, Doctoral Thesis. MGUA, Russia. Moskva, 22-25.

Nazarbayev to the nation of Kazakhstan "Strategy
"Kazakhstan 2050": new policy of the established state"
14.12.2012

Nazarbayev, N. A. 2010. Decree of the President of the Republic of
Kazakhstan "On strategic development plan of the Republic of
Kazakhstan up to 2020", Kazakhstanskaya Pravda, vol. 922: 1
February, 2010.

Aigul MAIDYROVA. Doctor of Economical Science, Professor. Head of
the Department of Public and Local Administration, Academy of Public and
Local Administration under the President of the Republic of Kazakhstan,
Astana, Republic of Kazakhstan. Research interests: human capital,
management, public administration.